New understanding of private domain operations in 2021

A few days ago, Tencent Marketing Insights (TMI) and Boston Consulting Group (BCG) jointly released the "2021 China Private Domain Marketing White Paper". This is a very guiding white paper. It has many reference significance for the construction of private domains in the future and can enhance the level of understanding of private domains. It is worthy of careful reading by the management of major companies.

2020 is known as the first year of private domain traffic operation. Many companies have been moved online and have achieved good results. The trend of private domain marketing has begun to sweep across the country. In 2020, the WeChat mini-program ecosystem has become increasingly mature - the number of daily active users has exceeded 400 million. The continuous improvement of Tencent Kandian and Video Accounts has enabled brand owners to better reach consumers. In 2021, private domain traffic has become an important position that cannot be ignored in brand marketing.

Private domain operations are driving up the overall GMV growth of enterprises

As a company's own user asset, brands can actively and repeatedly reach and awaken users with private domain traffic. By mastering user data and accurately analyzing user behavior, they can then enhance brand influence through user diffusion. Combined with operational means and applying user data, they can achieve the goal of refined marketing.

The touchpoints for brands to build private domains are not limited to WeChat, but also include self-operated apps, official websites, Weibo communities, e-commerce communities, and official short video platforms. So don’t think that building a private domain means building a WeChat private domain. Enterprises need to build different private domain touchpoints according to their own needs.

Why has private domain traffic become an important battlefield that cannot be ignored in brand marketing? Because private domain has become an important way for brands to influence consumers, there are five benefits:

1. High penetration of private domain traffic: The penetration rate of private domain touchpoints in China reaches 96%.

2. Private domain traffic has strong stickiness: Chinese consumers spend an average of nearly 6 hours on their mobile phones every day, of which nearly 1.5 hours are spent on private domain touchpoints.

3. Private domain traffic is easy to get used to: 42% of consumers have formed the habit of using private domain touchpoints.

4. Private domain traffic has a great influence: 74% of consumers said that their consumption decisions are influenced by private domain content. Word of mouth and practical information have the greatest impact.

5. Private domain traffic transaction frequency: 79% of consumers have made purchases in the private domain in the past year, of which 45% said they would increase their purchase frequency and 80% said they would share.

The data shows that users' consumption habits in the private domain have been formed, and it will be a battleground for most companies in the future. However, many leading companies have already taken a preemptive position, and a large number of companies are rushing into the market. It is foreseeable that private domain traffic operators will be a hot profession in the future.

With the increase of private domain touchpoints, content collection has become more convenient and efficient. Consumers can obtain more information in the brand's private domain and have stronger stickiness with the brand. After consumers develop habits, it is easier to stimulate their desire to buy, promote their first order, and increase repurchase rate.

Why are consumers more willing to buy in private domains?

1. Three main reasons why consumers choose private channels for purchases:

1. Many new products. Brands will release more categories in private channels

2. Easy to purchase. Reaching users is more timely and consumption is more convenient for users.

3. Good customer service. Private channel brands often arrange more customer service follow-ups and can handle users' sales issues in a timely manner. Consultative customer service is emerging.

2. Three types of products that consumers prefer to buy in private domains:

1. Joint/limited edition products

2. Hot-selling products

3. New products

The data shows that when brands are building their private domains, they should not simply pile up products, but should focus on co-branded/limited edition products, popular products and new product activities, as these categories will account for a larger proportion of GMV.

3. Users have high repurchase rate and sharing rate in private domains.

Building a private domain for a brand means that it needs to do a good job of operating the private domain and create a good overall atmosphere. The direct feeling for users is a sense of belonging, which can stimulate the frequency of repurchases and make them more willing to interact and share in the private domain, thereby driving more private domain users to complete their first order and increase repurchases.

Understanding consumer portraits is the key to doing a good job in private domain

With the progress and development of human society, people's consumption level has been unprecedentedly improved. This level is not just a simple material demand, but more services are needed. The proportion of services other than products is getting higher and higher. Standardized products and services have become common, and personalized services provided by private domains will better meet people's needs.

To do well in the private domain, you need to do a good job in content. 56% of users in the private domain have high content demands and are eager to obtain richer and more interesting content in the private domain.

To do a good job in private domain, pay more attention to product quality and brand power. 85% of users in the private domain are more concerned about product quality and brand credibility, while their attention to price is decreasing.

To do a good job in private domain, it is necessary to make detailed service triggers. 61% of users are willing to purchase in private domains mainly because of convenience. Service triggers such as discount notifications and one-click purchases make users feel very convenient.

To do a good job in private domain, we need to provide good services. 61% of users in the private domain value services more. The purchase of a product is not the end, the user's life cycle has just begun. Companies must attach importance to user services in order to achieve continuous repurchase and word-of-mouth communication.

I believe the above four points can provide more inspiration to companies doing private domain business and help them find the direction in the process of building private domain.

Private domain users can be roughly divided into five categories:

1. Active Sharing

The characteristics of this group of people are high income (per capita disposable income of 8,000+), young and middle-aged (26-40 years old), living in first-tier or new first-tier cities, and mainly management and sales people (civil servants, corporate managers and sales service people). Typical groups include beauty bloggers and fitness experts. This group of people accounts for 10%.

This group of people has many touchpoints in the private domain, with an average of 3.3 touchpoints per person. They have a high repurchase rate in the private domain and are willing to promote the brand. This group of people need to be empowered by companies so that they can develop into KOCs in the private domain. During activities, they can be inspired to share more and influence more people. Keywords: multiple touchpoints, high repurchase, love to share.

2. Deep fans

The characteristics of this group of people are that they are mainly women (52%), live in first-tier or new first-tier cities, and are mostly young people (18-30 years old). Typical groups include beauty fans and newcomers to the workplace. This group of people accounts for 22% of the total.

They are deep users in the private domain, with a high purchase frequency (2.2 times per month on average), and are also prone to impulse buying. It is easier to drive consumption among this group of people through brand live broadcasts, IP cooperation, and KOC interaction. Keywords: private domain obsession, frequent purchases, and impulsiveness.

3. Smart Consumers

The characteristics of this group of people are that they are mainly self-employed people (full-time housewives, retirees, etc.), mainly middle- and low-income earners, and are over 40 years old. Typical groups include housewives, senior citizens, etc. This group of people accounts for 29%.

In their private domain, they will pay more attention to cost-effective products, purchase products in a more planned manner, and product price discounts will attract them more. Keywords: cost-effectiveness, product selection, and bargain hunting.

4. Quality Lifestyle Home

The characteristics of this group of people are that they are generally highly educated, have a relatively high income level, and have a balanced gender balance. Typical groups include digital fans, moms and dads, and skin care ingredient fans. This group of people accounts for 22% of the total.

They pay more attention to product quality and service. Brands can invite them to participate in more official activities, send in-depth product information and brand history, and enhance their loyalty to the brand. Keywords: focus on planning, compare quality, and enjoy service.

5. Lurking Follower

This group of people mainly have low or medium education levels, and most of them live in third-tier cities and below. Typical groups include front-line workers, who account for 17%.

This type of people rarely share and interact, and spend more time using public accounts and video accounts. Then the brand can use official accounts and video accounts as core media for sedimentation and communication, so that customers can increase their sense of identification with the brand. Moreover, through the leadership of KOCs in private domains, it can stimulate their herd mentality and increase conversion and sharing frequency. Keywords: high attention, low interaction, low sharing.

Different groups of people have different needs and characteristics. Brands need to carry out refined operations on users through data analysis and behavioral habits. Through the official data, we can find that different industry brands and different user attributes use different private domain models. There is basically no standardization. Enterprises need to create their own exclusive and personalized private domain models.

Four types of operation models in private domain traffic

There are large differences in the professional knowledge requirements, consumption amounts and frequencies among different categories. Four different private domain traffic operation models are shared here for your reference and learning.

01. Hobby-related operation model

This type of operating model is suitable for high-frequency and high-unit-price products, and is applicable to industries such as fashion, popular beauty products, and travel products. There is a high proportion of lurking followers and deep fans who pay more attention to the appearance of the product and KOL recommendations, and like to buy while watching. Private domain operations require “bestie”-style caring sharing, and the brand’s main goals are: user acquisition, conversion and retention.

Taking Afu Essential Oil in the beauty industry as an example, it uses expert recommendations to promote videos in the public domain, and uses targeted delivery in the circle of friends to focus on the middle- to high-end female group aged 20-40. It uses celebrities and KOLs to activate users, and achieves in-depth promotion and efficient conversion through the brand's official live broadcast. Subsequently, we will continue to retain users through WeChat for Business and continue to stimulate users’ purchasing desire through operational means in WeChat communities. Live streaming and mini-program malls will complement each other to form a closed loop, reducing customer acquisition costs by 70%.

02. Knowledge Expert Operation Model

This type of operating model is suitable for high-frequency and high-unit-price products, and is applicable to industries such as maternal and child products, educational courses, and high-end beauty/skin care products. Quality life lovers and active sharers account for a high proportion, and consumers of this type focus on product information, word of mouth and brand interaction. Private domain operations require “expert” professional guidance. The brand focuses on user acquisition and fan interaction.

Taking the Feihe brand as an example, it accumulates users through precise targeting in the Moments, creates a WeChat brand zone, and continuously outputs high-quality parenting content for mothers through its official account, cultivates the stickiness between users and the brand, achieves one-to-one contact through corporate WeChat, and uses a variety of tools to enhance interaction within the WeChat community through parenting exchanges, lucky draw interactions, parenting science popularization, live streaming, KOC sharing, and other methods.

03. Exclusive Consultant Operation Model

This type of operating model is suitable for low-frequency, high-unit-price products and is applicable to industries such as luxury goods, automobiles, and home furnishings. Private domain operations require "shopping guide" type meticulous services, focusing on the all-round experience of the brand, including activities, social interaction, personalized services, etc. Focus on fan interaction and provide comprehensive and three-dimensional services to fans.

Taking HP as an example, it was the first to bring the entire chain of offline store services online, with LBS regional positioning and identification for thousands of offline stores. It promoted retention through content operations created by mini-programs and official accounts, connected with corporate WeChat, provided 1V1 shopping guides online directly, and followed up on orders in a timely manner. The retention conversion rate increased by 2 times, and the cost of leads decreased by 20%.

04. Shopping consultant operation model

This type of operation model is suitable for high-frequency, low-unit-price products, and consumers are more concerned about promotional information and purchase convenience. Applicable industries such as catering, home care/daily chemicals. The purpose of private domain operations is to help users save money, and it is necessary to focus on conversion and retention to maximize the value of fans.

Taking Daily Black Chocolate as an example, through precise push notifications in the circle of friends, fans are retained in the corporate WeChat and interact with fans, and community-exclusive benefits are launched, such as new products, coupons, etc. Multi-scene and multi-touchpoints stimulate fans' desire to buy, achieving the retention of 100,000 private domain users and a 4-fold monthly business growth of the mini program.

Author: Fei Su Growth

Source: Feisu Growth (bujigongshe)